Big data became one of the buzzwords on marketing and business professionals’ lips in 2013. Although the concept of big data has been around for a few years, recently it has exploded and become a very lucrative business.

There are many variations on the definition of big data. Ranging from it being likened to a ‘tsunami of data’ or – at the other end of the spectrum – ‘same old traditional data’, the most complete definition I have discovered is from Forbes,

‘big data is a collection of data from traditional and digital sources inside and outside your company that represents a source for ongoing discovery and analysis.’

One of the reasons that big data has seen accelerated interest is due to the high growth rate of digital media. With the increase in use of tablet and mobile devices the typical buyer has a larger number of channels to access and consume content. With it being ever more difficult to determine the customer’s journeys and paths taken in the buying cycle, big data is considered to provide marketers a solution by offering a deeper level of understanding. With this new level of understanding, the correct use of big data is able to provide more targeted communications as a result.

Netflix have been at the forefront of using big data analysis to benefit their marketing operations. With big data, they are able to drive more targeted and tailored recommendations to customers that in turn lead to a better experience for them. This seems to have helped generate new customers, with more than 2.3 million new subscribers in America alone joining in the fourth quarter of 2013. The outlook for Netflix and their continued use of big data looks set to grow.

With the increase in demand for knowledge and involvement, investors have injected over $3.6 billion into startups focused on big data in 2013 alone. Some of the main beneficiaries are Palantir, MongoDB, and Mu Sigma, who boast high profile clients such as Microsoft. The trend for 2014 and beyond however appears to be slightly different.

Investors will look to see a return on capital invested and rather than injecting further cash, there will almost be a chance to take a breath and re-evaluate the past 12 months. This will lead to reduced spending, but a further development of what can be achieved through the use of big data, as this hasn’t yet been completely defined.

However, what does this mean for marketers?

It provides the opportunity for marketers to get even closer to their customers; to be able to understand more about their buyers than ever before, through a better reading of the patterns and trends that appear. With big data, marketers have real facts and figures to be able to create more targeted campaigns and be able to predict – sometimes with pinpoint accuracy – the journeys customers will take.

Outside of marketing, an important use of big data is to allow machines and technology to communicate. This is particularly important for modern cities: by having the ability to take advantage of big data, they can improve efficiency and improve standards of living. Electronics giant General Electric proposed it could even combat against menacing aliens!

What the future holds for big data is a little unknown, but with its possibilities, the future looks bright for Datalandia and for modern marketers.

By Richard Dukes